Commercial Metals Company (CMC)
Quick ratio
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 638,261 | 704,603 | 592,332 | 475,489 | 603,966 | 582,069 | 672,596 | 410,265 | 846,587 | 415,055 | 497,745 | 443,120 | 367,347 | 465,162 | 542,103 | 462,110 | 232,442 | 224,797 | 192,461 | 120,315 |
| Short-term investments | US$ in thousands | — | 453,457 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,118,510 | 1,216,350 | 1,240,220 | 1,244,650 | 1,263,550 | 1,287,290 | 1,358,910 | 1,330,280 | 1,153,870 | 1,095,610 | 1,105,580 | 1,073,120 | 895,604 | 869,052 | 880,728 | 880,602 | 961,694 | 961,458 | 1,016,090 | 1,014,160 |
| Total current liabilities | US$ in thousands | 762,547 | 786,955 | 843,714 | 852,944 | 1,066,150 | 1,077,550 | 1,356,990 | 1,390,690 | 825,201 | 892,120 | 980,473 | 853,367 | 674,093 | 613,199 | 745,263 | 627,343 | 649,134 | 601,964 | 694,590 | 704,258 |
| Quick ratio | 2.30 | 3.02 | 2.17 | 2.02 | 1.75 | 1.73 | 1.50 | 1.25 | 2.42 | 1.69 | 1.64 | 1.78 | 1.87 | 2.18 | 1.91 | 2.14 | 1.84 | 1.97 | 1.74 | 1.61 |
February 29, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($638,261K
+ $—K
+ $1,118,510K)
÷ $762,547K
= 2.30
The quick ratio of Commercial Metals Company has shown fluctuation over the periods provided. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term liabilities.
From the data, we can see that the quick ratio has generally been above 1, which is a positive sign. Specifically, the quick ratio has ranged from 1.25 to 3.02 over the periods provided. A higher quick ratio signifies a stronger liquidity position, indicating that the company has more than enough liquid assets to cover its short-term liabilities.
The quick ratio peaked at 3.02 in November 2023 and was also relatively high at 2.42 in February 2022. These periods suggest that Commercial Metals Company had a strong ability to quickly cover its short-term obligations with its liquid assets.
On the other hand, the quick ratio was lowest at 1.25 in August 2022, which indicates a relatively weaker liquidity position at that time. However, the company's quick ratio generally improved in the subsequent periods.
Overall, the trend of the quick ratio for Commercial Metals Company portrays a healthy liquidity position that has generally been above 1, indicating a robust ability to meet short-term obligations with liquid assets.
Peer comparison
Feb 29, 2024